Augean : New Cash LTIP for Executive & Management Team

16 August 2018

Augean plc ('Augean', 'Company' or 'Group')

New Cash LTIP for Augean Executive & Management Team

Augean, one of the UK's leading specialist waste management businesses, announces that it has approved and awarded a new cash long-term incentive plan for its management team (the 'Plan').

It is the aim of the Remuneration Committee to retain and motivate key employees during this potentially extended period of uncertainty for the Company following the HMRC assessments. The Board believes that the success of the Company over the next few years will depend to a significant degree on the performance of the management team and therefore that it is important to ensure that the members of the management team are well motivated and identify closely with the success of the Company. The Plan is therefore intended to align the interests of Augean's shareholders and management over the next five years.

The Plan will be awarded to the two executive directors, being Executive Chairman Jim Meredith and Chief Financial Officer Mark Fryer, and other key members of the management team. The Plan is designed to align and optimise the performance of the Company for the benefit of all shareholders, with the management team sharing in the incremental value generated. The performance target for the Plan is therefore based on the Company's share price on the cessation of the Plan in five years, or on a sale of the Company should this occur earlier.

The Plan will be funded through the incremental value generated by the management team, from a base of 35p (being the average share price for April 2018). Under the Plan, up to a maximum of 13% of this incremental value will be capable of being paid out, with the total amount payable subject to an appropriate cap. The maximum value payable to all participants under the Plan, in the event the performance criteria are met in full, would be £7 million, of which £3.1 million would be attributable to Jim Meredith and £1.0 million would be attributable to Mark Fryer.

The cash awards to Jim Meredith and Mark Fryer, as Directors of the Company, under the Plan constitute a related party transaction for the purposes of AIM Rule 13.

The Company's independent Directors (John Grant, Andrew Bryce, Rod Holdsworth, Roger McDowell and Christopher Mills), having consulted with N+1 Singer, the Company's Nominated Adviser, believe that the terms of the Plan are fair and reasonable insofar as the shareholders of the Company are concerned.

Major shareholders have been consulted on the terms of the Plan and have given their support.

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Enquiries:

Augean plc Jim Meredith, Executive Chairman Mark Fryer, Group Finance Director	01937 844 980
N+1 Singer Shaun Dobson Jen Boorer	020 7496 3000